NEW DELHI: Central government saved Rs 10,000 crore in 2021-22 by effectively monitoring the implementation of centrally-sponsored schemes (CSS), finance ministry officials told TNIE.
Due to effective monitoring through the newly-implemented single nodal agency (SNA) system, Rs 1.2 lakh crore meant for centrally sponsored schemes in 2021-22 is still lying with the bank. “This has helped the Centre save Rs 10,000 crore in interest income,” says a senior official in the expenditure department of the ministry.
“Earlier, it would be difficult to track the funds allocated to states for these schemes. But with the SNA system in place, we can monitor the disbursal at every level, and accordingly release funds,” explains another official from the department.
Centrally-sponsored schemes are partly funded by the Centre and the rest by the states. Under the SNA system, the Centre releases funds to a state’s account maintained with the RBI, and through that account, money flows to accounts of each scheme.
With the system in place, the Centre can not only monitor the money that has flowed from RBI to states’ accounts but also keep track of states that have contributed their share in the account. The Centre releases funds to the states’ accounts strictly based on the balance available in it. If a state doesn’t spend the amount, the Centre could delay the further release of funds. Also, if the state has not contributed its share in the account, the central government can stop the release of funds.
“With SNA system, each scheme has only one account instead of multiple accounts, in which money used to go earlier. Earlier, 30 lakh bank accounts were maintained across different levels for centrally-sponsored schemes, but with the SNA system the number of accounts have come down to just over 3,000 accounts,” said the second official.